Indonesia’s National Zakat Body extends first contribution to support SDGs

Jul 19, 2017

JAMBI, Indonesia ( July 19, 2017) – The National Board of Zakat (BAZNAS), responsible for the disbursement of the Islamic mandatory contribution to the poor in Indonesia, on Wednesday agreed to extend its first contribution to support the achievement of the Sustainable Development Goals (SDGs) in the country.

The USD350,000 contribution by BAZNAS is to support UNDP’s Market Transformation through Design and Implementation of Appropriate Mitigation Actions in the Energy Sector (MTRE3), led by Mr. Rida Mulyana, DG for Renewable and Energy Conservation under the Ministry of Energy and Mineral Resources. This first contribution is to support the development of a micro hydro power plant in Sumatra island’s Jambi province.

The Ministry of Energy and Mineral Resources welcomes the BAZNAS contribution. According to the Ministry, some 30 million Indonesians – or 12 percent of the population – do not have sufficient access to electricity as of published data in 2015.

In many Islamic countries like Indonesia, zakat is mostly channeled informally through families and friends and uncertified charity bodies and orphanages. BAZNAS is the official body that disburses the Islamic contribution in Indonesia, where some 87 percent of its 235 million people are Muslim.

The contribution by BAZNAS marks a landmark step that formalizes the channeling of zakat funds to achieve of SDGs for the first time anywhere in the world. The 2030 global development agenda is an ambitious plan to eradicate extreme poverty, and zakat has an enormous untapped potential to make meaningful contribution in ensuring that no woman, man or child is left behind,” said Francine Pickup, Deputy Director of UNDP Indonesia.

She added that lack of access to electricity will hold back communities to improve their standard of living and is a major constraints to alleviating poverty in Indonesia. Some 28 million people live below the national poverty line.

“Islamic principles support a socially inclusive development process. This contribution is part of our vision to have a bigger impact on Indonesia’s development which will benefit the poorest and most disadvantaged people in the country, ” said BAZNAS Deputy Commissioner, Zainulbahar Noor.

UNDP’s MTRE3 Project operates in the provinces of Riau and Jambi, as well as the eastern provinces of West Sulawesi and Nusa Tenggara Timur (NTT), where the percentage of families lacking access to electricity remains high. The project aims to develop and boost access to alternative energy, particularly in rural areas facing high poverty.

Funded by the Global Environment Facility (GEF), the five-year project has a main objective to support the design and implementation of climate change mitigation actions in the energy generation and energy end use sectors. It seeks to support the Government of Indonesia to achieve its emission target cut by 29 percent on a business as usual scenario by 2030.